{"id":4563,"date":"2020-02-11T11:29:13","date_gmt":"2020-02-11T11:29:13","guid":{"rendered":"https:\/\/www.mrpeasy.com\/blog\/?p=4563"},"modified":"2023-11-16T08:05:16","modified_gmt":"2023-11-16T08:05:16","slug":"material-requirements-planning-and-manufacturing-resource-planning-difference","status":"publish","type":"post","link":"https:\/\/www.mrpeasy.com\/blog\/material-requirements-planning-and-manufacturing-resource-planning-difference\/","title":{"rendered":"Material Requirements Planning and Manufacturing Resource Planning difference"},"content":{"rendered":"\n<p>The MRP is a planning system that allows you to manage the production resources of an organization. Here is an overview of Material Requirements Planning (MRP I) and Manufacturing Resource Planning (MRP II) differences.<\/p>\n\n\n\n<!--more-->\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"563\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Material-Requirements-Planning-and-Manufacturing-Resource-Planning-difference-1.jpg\" alt=\"Material-Requirements-Planning-and-Manufacturing-Resource-Planning-difference-1\" class=\"wp-image-4583\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Material-Requirements-Planning-and-Manufacturing-Resource-Planning-difference-1.jpg 1000w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Material-Requirements-Planning-and-Manufacturing-Resource-Planning-difference-1-300x169.jpg 300w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Material-Requirements-Planning-and-Manufacturing-Resource-Planning-difference-1-768x432.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/figure>\n<\/div>\n\n\n<p><em>You can also listen to this article:<\/em><\/p>\n\n\n\n<iframe loading=\"lazy\" title=\"Material Requirements Planning and Manufacturing Resource Planning difference\" height=\"122\" width=\"100%\" style=\"border: none;\" scrolling=\"no\" data-name=\"pb-iframe-player\" src=\"https:\/\/www.podbean.com\/media\/player\/599kv-da06fd?from=pb6admin&amp;download=1&amp;version=1&amp;auto=0&amp;share=1&amp;download=1&amp;rtl=0&amp;fonts=Helvetica&amp;skin=1&amp;pfauth=&amp;btn-skin=103\"><\/iframe>\n\n\n\n<p>This concept has evolved over time. Today <a rel=\"noreferrer noopener\" aria-label=\"MRP systems (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/mrp-system\/\" target=\"_blank\">MRP systems<\/a> are associated with software, with the ability to plan and control.<\/p>\n\n\n\n<p>Its main objective is to determine the amount of resources that the\norganization requires, to meet the required demand. Strictly speaking:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ensure that materials are delivered in a timely manner to customers.<\/li>\n\n\n\n<li>Ensure optimal inventory\nlevels<\/li>\n\n\n\n<li>Ensure the use of optimal resources within the organization (personnel,\ncash, machinery, energy, etc.)<\/li>\n<\/ul>\n\n\n\n<p>Let\u2019s see next how the MRP I evolved in MRP II, their main characteristics\nand differences between themselves. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #343333;color:#343333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #343333;color:#343333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mrpeasy.com\/blog\/material-requirements-planning-and-manufacturing-resource-planning-difference\/#History_of_MRP\" >History of MRP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mrpeasy.com\/blog\/material-requirements-planning-and-manufacturing-resource-planning-difference\/#What_is_MRP_I\" >What is MRP I<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mrpeasy.com\/blog\/material-requirements-planning-and-manufacturing-resource-planning-difference\/#Advantages_of_MRP_I\" >Advantages of MRP I<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mrpeasy.com\/blog\/material-requirements-planning-and-manufacturing-resource-planning-difference\/#What_is_MRP_II\" >What is MRP II<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mrpeasy.com\/blog\/material-requirements-planning-and-manufacturing-resource-planning-difference\/#Advantages_of_MRP_II\" >Advantages of MRP II<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.mrpeasy.com\/blog\/material-requirements-planning-and-manufacturing-resource-planning-difference\/#Differences_between_MRP_I_vs_MRP_II\" >Differences between MRP I vs. MRP II<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"History_of_MRP\"><\/span>History of MRP<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The use of MRP systems dates back to World War II when the United States government used programs to organize the logistics of its military resources. Subsequently, they were transferred to the industry and in the 60s and 70s, the first MRPs systems were created. This is how the MRP I or Material Requirements Planning systems were born. Its main objective was to determine the amount of materials to reach the production levels using the minimum inventory cost.<\/p>\n\n\n\n<p>However, businesses needed to manage\na greater number of organizational processes. Thus, it was necessary to expand\ntowards a broader planning model and that is why the MRP II system was born.\nThis new system contemplates and integrates other areas of the business, such\nas:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Factory<\/li>\n\n\n\n<li>Administration<\/li>\n\n\n\n<li>Sales<\/li>\n<\/ul>\n\n\n\n<p>It is important to note that the evolution of computers allowed these systems to improve. Today they became a vital component for the management of manufacturing business processes.<\/p>\n\n\n<div class=\"banner-v2\">\n    <p class=\"banner-v2__desc\">Instantly calculate material requirements with MRPeasy<\/p>\n    <a class=\"banner-v2__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\/\" target=\"_blank\" data-ga-event=\"blog_signup_banner_blue\">Try for free<\/a>\n<\/div>\t\t<style>.banner-v2 {\n    float: right;\n    display: flex;\n    flex-direction: column;\n    justify-content: center;\n    align-items: center;\n    padding: 40px 32px;\n    gap: 16px;\n    width: 356px;\n    height: 205px;\n    background: linear-gradient(199.68deg, #6084E5 13.17%, #5FA7DD 82.1%);\n    border-radius: 4px;\n    margin-left: 12px;\n    margin-bottom: 12px;\n    margin-top: 15px;\n}\n\n@media (max-width: 767.98px) {\n    .banner-v2 {\n         width: 100%;\n         height: 173px;\n         margin-bottom: 0;\n         margin-left: 0;\n    }\n}\n\n.single__content p.banner-v2__desc {\n    margin: 0 !important;\n}\n\np.banner-v2__desc {\n    width: 292px;\n    font-style: normal;\n    font-weight: 700;\n    font-size: 22px;\n    line-height: 29px !important;\n    text-align: center;\n    color: #FFFFFF;\n    margin: 0 !important;\n    order: 0 !important;\n}\n\n.single__content a.banner-v2__link {\n    color: #FFFFFF !important;\n}\n\n.single__content a.banner-v2__link:hover {\n    color: #003557 !important;\n}\n\na.banner-v2__link {\n    display: flex;\n    justify-content: center;\n    align-items: center;\n    width: 181px;\n    height: 51px;\n    padding: 18px 0;\n    border-radius: 4px;\n    background: #003557;\n    font-weight: 700;\n    font-size: 16px;\n    color: #FFFFFF !important;\n    text-decoration: none !important;\n    order: 1 !important;\n}\n\n.banner-v2__link:hover {\n    background: white;\n    color: #003557 !important;\n}<\/style>\n\t\t\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_MRP_I\"><\/span>What is MRP I<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MRP I stands for \u201c<a href=\"https:\/\/www.mrpeasy.com\/material-requirements-planning\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Material Requirements Planning (opens in a new tab)\">Material Requirements Planning<\/a>\u201d. It is basically a material planning and management system through the use of software. MRP I solves some issues within any manufacturing process, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What materials to buy<\/li>\n\n\n\n<li>How much material to buy<\/li>\n\n\n\n<li>When to buy the materials<\/li>\n<\/ul>\n\n\n\n<p>To answer all of these\nquestions, the MRP I use:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>The Production Master Plan which provides data on independent product demand.<\/li>\n\n\n\n<li>The Material Inventory, which means the amount of raw materials, semi-finished goods and finished products available.<\/li>\n\n\n\n<li>The <a rel=\"noreferrer noopener\" aria-label=\"Bill of Materials or BOM (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/blog\/what-is-bill-of-materials-functionality\/\" target=\"_blank\">Bill of Materials or BOM<\/a>, combining the components to produce a unit of product, the standardized quantities to use and their parent-child relationship.<\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Bill-of-Materials-bom.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"298\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Bill-of-Materials-bom-1024x298.jpg\" alt=\"Bill-of-Materials-bom\" class=\"wp-image-4577\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Bill-of-Materials-bom-1024x298.jpg 1024w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Bill-of-Materials-bom-300x87.jpg 300w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Bill-of-Materials-bom-768x223.jpg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p>And the outputs obtained will\nbe:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A Recommended Production\nSchedule<\/li>\n\n\n\n<li>A Recommended Purchasing\nSchedule.<\/li>\n<\/ul>\n\n\n\n<p>The Schedule is valid for both: the items to buy and the sub-assemblies and\ncomponents to be produced. <\/p>\n\n\n\n<p>Note that MRP I systems manage inventories of dependent demand. The dependent demand is for component parts or subassemblies. The independent demand is the demand for a finished product. As an example, a company that manufactures bicycles determines the amount of tires to buy for the bicycles demand forecast. The bicycles are independent demand, while tires are dependent demand.<\/p>\n\n\n\n<p>A <a href=\"https:\/\/www.mrpeasy.com\/blog\/what-is-master-production-schedule\/\" target=\"_blank\" rel=\"noreferrer noopener\">Master Production Schedule<\/a> (MPS) is a plan for individual products to be manufactured in each individual time period. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_MRP_I\"><\/span>Advantages of MRP I<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The advantages of using an MRP\nSystem are shown below:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reduction of the cost of\ninventories<\/li>\n\n\n\n<li>Control of inventory levels<\/li>\n\n\n\n<li>Reduction of waiting times in\nsupply and production<\/li>\n\n\n\n<li>Better manufacturing and\npurchasing planning<\/li>\n\n\n\n<li>Knowledge about input needs<\/li>\n\n\n\n<li>Help in making supply\ndecisions<\/li>\n\n\n\n<li>Control and documentation<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_MRP_II\"><\/span>What is MR<strong>P II<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MRP II is defined as &#8220;Manufacturing Resource Planning&#8221; and was born in the 80s. The purpose was to offer a broader planning and control tool to its predecessor, the MRP 1. MRP 2 is a computer-based system that creates production schedules including the arrival of materials, machine and labor. MRP II defines what resources, what quantities, and at what time they will be necessary to carry out all business production processes. <\/p>\n\n\n\n<p>MRP II constitutes the heart of manufacturing companies. It is an\nintegrated method of operational and financial planning for manufacturing\ncompanies. In addition to answering questions about what, how many and when to\npurchase materials from MRP I, MRP II answers the following questions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What resources are necessary?<\/li>\n\n\n\n<li>What amount of resources?<\/li>\n\n\n\n<li>When will these resources be\nnecessary?<\/li>\n<\/ul>\n\n\n\n<p>MRP II identifies the capacity problems of the <a href=\"https:\/\/www.mrpeasy.com\/production-planning\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"production plan (opens in a new tab)\">production plan<\/a>. It resolves the divergences between the availability of resources and planned consumption.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"353\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Production-plan-1-1024x353.jpg\" alt=\"Production-plan\" class=\"wp-image-4579\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Production-plan-1-1024x353.jpg 1024w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Production-plan-1-300x104.jpg 300w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Production-plan-1-768x265.jpg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>In addition to the MRP I tools, the MRP\nII calculates and solves:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The planning of the manufacturing resources of the organization<\/li>\n\n\n\n<li>Ability to simulate production processes<\/li>\n\n\n\n<li>Optimized calculation of routes and work centers<\/li>\n\n\n\n<li>It is based on the study of demand and the market.<\/li>\n\n\n\n<li>It covers more departments, not only production but also purchasing, quality, financial, etc.<\/li>\n<\/ul>\n\n\n\n<p>The inputs are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Work Progress Feedback, showing how the work has progressed, to all levels of the schedule so that the next run can be updated on a regular basis. <\/li>\n\n\n\n<li>Resource Scheduling, which is the calculation of resources to convert the raw materials into finished goods.<\/li>\n\n\n\n<li>Batching Rules takes into account the logic which batches are produced (i.e. EBQ, Lot for Lot, etc.)<\/li>\n\n\n\n<li>Rough Cut Capacity Planning (RCCP), to match the workload to the capacity available.<\/li>\n\n\n\n<li>Software extension programs, such as including sale orders processing, cost accounting, etc.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_MRP_II\"><\/span>Advantages of MRP II<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The advantages of using an MRP\nII System are shown below:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>All the advantages coming from\nMRP I<\/li>\n\n\n\n<li>Optimization of machinery\nusage and productivity improvement<\/li>\n\n\n\n<li>Coordination and control of\nproduction and inventories<\/li>\n\n\n\n<li>Ease of adaptation to order changes.<\/li>\n\n\n\n<li>Reduction of outsourcing and\nidle times<\/li>\n\n\n\n<li>Financial knowledge of planned\nand real production.<\/li>\n<\/ul>\n\n\n<div class=\"banner-v1\">\n    <div class=\"banner__text\">\n        <div class=\"banner-v1__title\">Start reaping the benefits of MRP II<\/div>\n        <div class=\"banner-v1__desc\">MRPeasy users report a 54% average improvement in their overall performance and a 42% increase in on-time deliveries.<\/div>\n        <div><a class=\"banner-v1__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\/\" target=\"_blank\" data-ga-event=\"blog_signup_banner_white\">Try for free<\/a><\/div>\n    <\/div>\n    <div class=\"banner__img\">\n        <img decoding=\"async\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/themes\/mrpeasy\/assets\/images\/banner.svg\" alt=\"banner\">\n    <\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Differences_between_MRP_I_vs_MRP_II\"><\/span>Differences between MRP I vs. MRP II<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In summary, MRP I (Material\nRequirements Planning) is a material management system. It calculates when purchasing orders\nmust be made to suppliers and the work orders released. It will provide the\namount of material needed, according to the scheduled production. <\/p>\n\n\n\n<p>In contrast, MRP 2 (Manufacturing Resource Planning) is a manufacturing system. It not only deals with the purchasing and <a href=\"https:\/\/www.mrpeasy.com\/production-scheduling\/\" target=\"_blank\" rel=\"noreferrer noopener\">production scheduling<\/a> but also with the capabilities of the factory in aspects such as labor or machinery. <\/p>\n\n\n\n<p>The next chart summarizes the main differences between the two systems:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Differences-between-mrp-I-and-mrp-II.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Differences-between-mrp-I-and-mrp-II-1024x576.png\" alt=\"Differences-between-mrp-I-and-mrp-II\" class=\"wp-image-4585\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Differences-between-mrp-I-and-mrp-II-1024x576.png 1024w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Differences-between-mrp-I-and-mrp-II-300x169.png 300w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Differences-between-mrp-I-and-mrp-II-768x432.png 768w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2020\/02\/Differences-between-mrp-I-and-mrp-II.png 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>The MRP is a planning system that allows you to manage the production resources of an organization. Here is an overview of Material Requirements Planning (MRP I) and Manufacturing Resource Planning (MRP II) differences.<\/p>\n","protected":false},"author":4,"featured_media":4583,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[90,94,93],"tags":[199,198,3,197,30,40,196,195],"class_list":["post-4563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-choosing-a-software","category-tips","category-production-planning","tag-comparison","tag-difference","tag-manufacturing","tag-manufacturing-resource-planning","tag-material-requirements-planning-software","tag-mrp","tag-mrp-i","tag-mrp-ii"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Material Requirements Planning and Manufacturing Resource Planning difference<\/title>\n<meta name=\"description\" content=\"The MRP is a planning system that allows you to manage the production resources. 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